Biofuel process patents

2008-01-01

B
IOFUELPROCESSPATENTS

JEREMYLAWSON*
LEGERROBICRICHARD,
LLP
L
AWYERS,PATENTANDTRADE-MARKAGENTS
Apatentbestowsanexclusivemonopolyrightforaninventioninthecountryin
whichitisgranted.TheCanadianPatentActdefines“invention”as“anynewand
usefulart,process,machine,manufactureorcompositionofmatter,orany
improvement”thereof.Processpatentsprotecttheseriesofstepsforpreparinga
productorenablingadesiredtransformation,forexampleconvertinganimalfatsor
vegetableoilsintoalkylestersortransformingsugar-orcellulose-basedfeedstocks
intoalcoholordimethylfuran.
Inthemoderneconomy,manufacturingmayoccurinmanycountries.Financial,
regulatoryandgeopoliticalpressuresmaydictatethatsomeproductsareproduced
inagivencountryprincipallyorexclusivelyforexport.
Manydifferentinternationalendeavoursandcooperationinitiativesaredevelopingin
thebiofuelindustryastheglobaldemandforbiofuelscontinuestogrow.
Internationaltalksandcollaborationsregardingethanolhavebeenobserved
betweenorganisationsinJapanandBrazil,aswellasinotherSouthAmerican
states.TheMexicanfirmPetroSunreportedlyhasplanstoerectalgae-to-biodiesel
systemsandoilextractionplantsintheUnitedStates,MexicoandAustralia.
BiodieselplantsarebeingconstructedoroperatedfromLima,PerutoHamilton,
Canada,aswellasfromthesoybean-beltoftheUnitedStatestoNoviSad,Serbia.

Sincethebasiccompoundsandcompositionsofbiodieselandethanolbiofuelsare
nothingnew,themainthrustofbiofuelsresearchisgearedtoimprovingproduction
processestoboostefficiencyanddrivedowncost.Therefore,processinventions
accountforasignificantsliceofthepatentinginthisfield.
Butifaprocesspatentgivesamonopolyonlyinthecountryofthepatent,canthe
ownerenforceitspatentrightswhentheprocessisusedabroad?
Theansweristwofold.Ontheonehand,thepatentownercannotpreventits
processfrombeingexploitedinanycountrywhereitdoesnotholdapatent.Onthe

©CIPS,2008.*OfLEGERROBICRICHARD,LLP,amultidisciplinaryfirmoflawyers,andpatentandtrade-marks
agents.TobepublishedintheJuly2008issueofBiofuelsCanadaMagazine.Publication063.005.

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otherhand,thepatentownercanstopimportationintothecountrywhereitholdsa
processpatent,iftheproductwasproducedbythepatentedprocessabroad.
Forinstance,ifaprocessforproducingethanolfromcellulosefeedstocksis
patentedintheUnitedStatesalone,andthisprocessisbeingutilizedinSouth
America,theethanolproducedbythisprocesscanbeexportedtoanycountry
excepttheUnitedStates.Onemustthereforeappreciatetheimportanceof
evaluatingthepatentpotentialofanewtechnologyonacountry-by-countrybasis
andwithaneyetotheimport-exportpossibilitiesoftheconsumableproduct.
Thespecificapplicationofinfringementbyimportationmayvarydependingon
jurisdiction.Itsapplicabilityalsodependsontheimporteditemandtheend-product
ofthepatentedprocess.Forinstance,accordingtotheSaccharindoctrine,whichis
inforceinsomecountrieslikeCanadaandtheUnitedKingdom,whentheimported
productisnotpreciselythesameastheoneresultingfromthepatentedprocess,but
isratheranintermediatewhichisthenusedintheproductionofthefinalproduct,the
importationwillneverthelessbeaninfringementifthepatentedprocessisimportant
andnotmerelyincidentaltotheimportedproduct.Forbiofuels,thismaybepertinent
iftheimportedproductisapre-treatedorgeneticallymodifiedfeedstock.
Ingeneral,Canadiancaselawdefinesinfringementas“anyactthatinterfereswith
thefullenjoymentofthemonopolygrantedtothepatentee”oranyactivitythat
deprivestheinventoroffullenjoymentofthemonopolyconferredbylaw.
Process
patentsshouldnotbeundervaluedbyR&D-drivenentities,norshouldtheybe
underestimatedbythoseinvolvedinthemanufactureorimport-exportofbiofuels.

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